Relmada Therapeutics has recently received an a temporary restraining order and injunction in Nevada courts, against Laidlaw & Company, Ltd for their dissemination of false and misleading proxy materials. In 2011, Relmada appointed Laidlaw as their primary investment banker. Laidlaw also served as the financial adviser during merger discussions. However,in the summer of 2015, Laidlaw failed their client during a time of positive growth.
Relmada Therapeutics is not allowing the pain caused by Laidlaws failures to dim the future of the company. Recently, a letter was issued to their stock holders that stated:
“Relmada benefits from a pipeline that is strong, robust and delivering results. As evidence of our success,…” In addition to addressing the Laidlaw debacle the company geared focus to the positive movement they are currently making relating to pain management research and developments. The company also took pride in their enlistment of James Dolan to their advisory team.
While the fight is not over in Nevada, it seems Laidlaw & Company has a history of failures. Laidlaw Broker Leonard V. Gallick, Jr. has a history of complaints resulting in clients recovering damages for various fraudulent actions. Managing Partner James Ahern, has had woes of his own. Although Matthew Eitner‘s profile on the company website lists his experience with niche company Casimir Capita- a quick online search has shown he has loss cases involving breach of contract; failure to train and supervise; breach of fiduciary duty; violation of duty to deal fairly and in good faith; actual and constrictive fraud; and violation of the state securities acts.
The United States is working towards a bright future, since the recession of 2008. In order for our country to flourish one thing we need to do is hold those working in the financial securities sector accountable. It is important to me that we set high standards to prevent the financial devastation we are overcoming, from ever happening again. In my opinion, to do that we need to restrict the operation of companies like Laidlaw from participating in financial activities.